15 Must-Know Process Improvement Tools in 2023

As businesses continue to evolve and adapt to the ever-changing market, it's crucial to have efficient and effective processes. Process improvement tools can help organizations streamline operations, reduce costs, and improve customer satisfaction.

This blog post will talk about some important tools for improving processes that organizations need to know about in 2023. From gap analysis to the SIPOC diagram, we will cover many tools to help organizations at all stages of their process improvement journey.

Whether you're just starting or looking to take your process improvement efforts to the next level, this post will provide valuable insights and information to help you achieve your goals. So, let's dive in and explore the must-know process improvement tools of 2023!

What Is a Process Improvement Tool?

A process improvement tool is a method or technique used to improve the efficiency and effectiveness of a process. Process improvement tools can be used to improve processes in a wide range of industries, from manufacturing to health care, and can be used by individuals and teams.

Process improvement tools are used to look at how a process is working now, find ways to make it better, and make the changes that will make the process better. Many process improvement tools are available, each with its strengths and weaknesses depending on your goal.

15 Process Improvement Tools

It can be hard to know where to start when improving your processes. Luckily, there are lots of tools out there that will help you do just that! These 15 tools are great for helping you make the most of your process improvement efforts:

1. Gap analysis

2. Kanban

3. Root Cause Analysis

4. Swimlane Diagram

5. Hoshin Kanri

6. Fishbone Diagram

7. PDCA Cycle (Plan, Do, Check, and Act)

8. Pareto Chart

9. Force Field Analysis

10. Prioritization Matrix

11. JIT – Just In Time

12. DRIVE (Define, Review, Identify, Verify, Execute)

13. Lean Six Sigma (DMAIC)

14. Hypothesis Testing

15. SIPOC Diagram

1. Gap analysis

Gap analysis is a tool that helps determine where there are problems in a process and where improvements can be made. It's used to measure the difference between what the process produces and what it should produce.

One way to do gap analysis is to compare the way things are done now to how they should be done. This allows you to see where the problem areas lie and how much improvement is needed.

Gap analysis can also be done by comparing your current process to similar processes used by other companies or organizations. This method can help you find the best practices that your company should use to make its own processes better.

Gap Analysis Example

One example of using gap analysis for process improvement is in the manufacturing industry. A manufacturing company may want to improve the efficiency of its assembly line. They would start by doing a gap analysis to find out what is different between how the assembly line is now and how they want it to be. The company may determine that the current state has many errors in the assembly process, long wait times for parts, and a lack of communication between team members.

The goal would be an assembly process with no mistakes, short wait times for parts, and good communication among team members.

Once the gap is identified, the company can develop a plan to bridge the gap and improve the assembly line process. This could include implementing new technology, training employees, and streamlining communication channels.

Through ongoing monitoring and measurement, the company can track progress and make changes to make sure that the desired state is reached and stays there.

2. Kanban

Kanban is a process improvement tool that allows you to visualize your work at a glance and move through it efficiently. It's a pull system, meaning you pull the next task from the top of your list when you're ready.

The tool works by creating a visual representation of your workflow. You create columns for different stages in the process, each with its own card or container. Move the cards from one column to another as you progress through your work. As soon as a task is completed, remove it from your board!

Kanban is great because it lets you see exactly where things are in your workflow at any given time, so you don't have to wonder whether something has been lost or forgotten somewhere along the way.

Kaban Example

Scenario: A small retail store faces inventory management and customer satisfaction issues.

Step 1: Define the problem: The store is having trouble keeping track of its inventory, and customers often leave it without finding the products they are looking for.

Step 2: Set a goal. The goal is to make it easier to keep track of inventory and make customers happier.

Step 3: Analyze the current process. The store uses a manual inventory management system and no customer feedback system.

Step 4: Use the Kaban. The store manager makes a Kaban board and tells one team member to manage the inventory and another team member to get customer feedback. The member of the inventory team is in charge of keeping the inventory levels up to date, and the member of the customer feedback team is in charge of getting customer feedback and figuring out what it means.

Step 5: Monitor and improve: The store manager regularly checks the Kaban board to see the progress of the tasks and makes any necessary adjustments to the process. The inventory team member implements new inventory management software to help track inventory levels more effectively. The customer feedback team member creates a survey for customers to fill out and uses the results to improve the customer experience.

Step 6: Evaluate the results. After a few months, the store manager sees a big difference in how well inventory is managed and how happy the customers are. The store can keep track of its inventory more effectively, and customers are happier with their shopping experience. The store manager keeps using the Kaban method to improve the way the store does things.

3. Root Cause Analysis

Root-cause analysis is a process improvement tool that helps you understand the factors that lead to a particular problem. It's important to use this technique as part of your overall process improvement plan because it helps you figure out why a problem is happening and what the best way is to fix it.

Root-cause analysis works by starting with some kind of issue (like low sales numbers) and then identifying potential causes for this issue (such as poor product quality). Once you've identified all of the factors that could be causing your problem, you can take action to address each one individually.

Root Cause Analysis Example

Scenario: A manufacturing company produces a product that is failing quality control tests at a high rate.

Step 1: Figure out what the problem is. The problem is that the product fails quality control tests a lot, which leads to higher costs for rework and lost money from products that are sent back.

Step 2: Get information. The quality control team looks into the product failures and gets information about them, such as the number and types of failures, when and where they happened, and any other relevant information.

Step 3: Analyze the Data: The data is looked at to find patterns and things that all the failed products have in common. It turns out that most of the problems are on a certain production line and are caused by a certain part of the product.

Step 4: Identify Root Causes: The root causes of the product failures are a lack of proper training for the production line workers and a defective component supplier.

Step 5: Come up with solutions. Solutions are made to deal with the root causes, such as giving the workers on the production line more training or switching to a more reliable supplier of components.

Step 6: Put the solutions into place. The solutions are put in place, and the quality control team keeps an eye on the product for more problems.

Step 7: Evaluate Results: Affect levels have decreased significantly after a few weeks, indicating that the solutions have effectively improved the process. The company continues to monitor the process to ensure that improvements are sustained.

4. Swimlane Diagram

Swimlane diagrams are a process map showing employees' different roles and responsibilities as they go through a series of steps.

A swimlane diagram shows the steps in a process and how one or more individuals handle each step. Companies can use these diagrams to look at their processes and find bottlenecks, waste, and places where they can make improvements. They also show how each employee is involved in the process, so managers can identify where people might be spending too much time on one task or another.

Swimlane Diagram Example

Scenario: Improving the hiring process for a company

Swimlane Diagram:

Human Resources Department | Recruiting Department | Hiring Manager | Candidates

Human Resources Department creates job postings on various job portals and social media.
Recruiting Department receives resumes and cover letters from interested candidates.
Recruiting Department screens resumes and shortlists the most qualified candidates.
The hiring Manager reviews the shortlisted candidates and schedules interviews.
Candidates attend the interviews and provide additional information as required.
The hiring manager reviews all candidates and decides who to hire.
Human Resources Department sends an offer letter to the selected candidate and arranges for onboarding.

Process Improvement Steps:

Implement an online application system to streamline resume and cover letter submissions.
Use an applicant tracking system to track the status of each candidate throughout the hiring process.
Conduct background checks on all final candidates to ensure they meet the company's qualifications.
Provide training to hiring managers on conducting compelling interviews and evaluating candidates.
Set up a clear way for the Human Resources Department, the Recruiting Department, and the Hiring Manager to talk to each other so that the hiring process goes smoothly and quickly.

5. Hoshin Kanri

Hoshin Kanri is an improvement process that helps companies set and achieve goals. It is also known as "policy deployment" in some industries. This is because it starts with an organizational vision broken down into goals. These goals are then translated into action plans and assigned to teams that manage their processes.

The goal of Hoshin Kanri is to provide a way for the organization to align its efforts toward specific goals while accounting for changing needs and challenges. It lets organizations be flexible and change their strategies when they need to, without losing sight of their long-term goals or giving up on important projects.

Hoshin Kanri Example

Scenario: A company that makes and sells electronic devices is getting a lot of complaints from customers about faulty products. The company's management team uses Hoshin Kanri to improve product quality and customer satisfaction.

Setting the Strategic Objective: The management team aims to reduce customer complaints by 50% within the next six months.
Developing the Action Plan: The team creates an action plan that includes identifying the root cause of the product defects, implementing new quality control measures, and providing additional training for employees.
Implementing the Action Plan: The team implements the new quality control measures and provides additional training for employees. They also establish a system to track and report customer complaints, which helps them identify problem areas and make improvements.
Monitoring Progress: The team regularly monitors progress and tracks the number of customer complaints. They also conduct regular audits to ensure that the new quality control measures are being followed.
Making Adjustments: If the team finds that progress is not meeting the target, they adjust the action plan and continue monitoring progress.
Achieving the Objective: After six months, the team successfully reduced customer complaints by 50% and reached the strategic objective. The management team then sets a new objective to maintain reduced customer complaints and improve product quality.

In this scenario, the Hoshin Kanri approach helps the company identify and solve problems, set specific goals and objectives, develop an action plan, monitor progress, and make adjustments as needed. Because of this, the company can improve the quality of its products, reduce customer complaints, and make its customers happier.

6. Fishbone Diagram

The fishbone diagram, also known as an Ishikawa diagram or cause-and-effect diagram, is one of the most powerful tools in any process improvement toolkit. It helps you figure out what problems are really about and how they affect the way your processes work.

The fishbone diagram comes from quality control, which was used to figure out why things went wrong in manufacturing. It's called a "fishbone" because its structure looks like the skeleton of a fish with bones radiating out from its head. The head is the problem, and the bones are different potential causes.

You can create this diagram by writing out all the possible causes for your problem on sticky notes, then placing them on a board so that they radiate outward from your head (or problem). Then you can group similar causes and begin to pull out specific root causes for further investigation.

Fishbone Diagram Example

Scenario: A company specializing in custom-made furniture is experiencing delays in its production process. People are complaining that they have to wait too long for their orders to be done. The company wants to improve its production process and reduce customer wait times.

Using the Fishbone Diagram, the company has found the following reasons why their production process might be slow:

Equipment: The company's machinery may be outdated or need maintenance.
Materials: The company may not have enough raw materials to meet demand.
Staff: The company may not have enough staff to handle the workload, or employees may not be properly trained to use the machinery.
Process: The company's production process may not be efficient, causing delays.
Environment: The company's factory may not be well-maintained, causing delays and safety hazards.

To address these potential causes, the company has decided to take the following actions:

Equipment: Upgrade the machinery and implement a regular maintenance schedule.
Materials: Increase raw materials inventory and set up a system for monitoring and reordering materials as needed.
Staff: Hire additional staff and provide training on how to use the machinery and follow the production process.
Process: Analyze the production process, identify bottlenecks, and implement changes to streamline and reduce delays.
Environment: Conduct a thorough cleaning and maintenance of the factory, and implement safety measures to reduce hazards.

Using the Fishbone Diagram, the company can figure out which parts of its production process need to be fixed and then take specific steps to cut down on customer wait times and make the whole process more efficient.

7. PDCA Cycle (Plan, Do, Check and Act)

PDCA is a tool for improving processes that helps you look at them and make sure they work well. It's a four-step process that can be applied to any process or procedure:

Plan: In this step, you identify the problem or opportunity you'd like to improve. You also brainstorm solutions and determine what kind of data will be needed during the next steps.

Do: In this step, you test your solution by implementing it in real life.

Check: In this step, you measure how well your solution worked using qualitative and quantitative data (numbers). If a change needs to be made based on what you learned from Step 3, then do so!

Act: In this step, once again, use qualitative and quantitative data (numbers) to decide whether or not your new solution is working better than the old one.

PDCA Cycle (Plan, Do, Check and Act) Example

Scenario: Improving the customer service process at a retail store

Plan:

Identify the current customer service process, including the steps involved and any potential bottlenecks or issues
Gather customer feedback to understand their experience with the current process and identify areas for improvement
Develop a plan to address identified issues and improve the customer service process, including changes to the process steps and training for employees

Do:

Implement the changes to the customer service process as outlined in the plan.
Train employees on the new process and provide ongoing support to ensure they understand and can effectively execute it

Check:

Monitor the customer service process to track progress and identify any issues or challenges that arise
Collect customer feedback to gauge the effectiveness of the changes and identify any additional areas for improvement

Act:

Address any issues or challenges identified during the check phase
Implement any additional improvements identified during the check phase
Continuously evaluate and improve the customer service process to ensure it remains effective and efficient.

8. Pareto Chart

A Pareto chart is a graphical representation of data. It shows the relationship between different categories of items, such as defects, products, and time.

It can be compared to how often the organization's processes or products have problems or flaws. The information you get can help you figure out what's most important and how to improve your processes or products.

The Pareto chart is also known as an 80/20 graph because it shows that 80% of problems can be attributed to 20% of all possible causes.

Pareto Chart Example

The assembly line at a company that makes things has been slowing down because certain pieces of equipment keep breaking down. The management team wants to find out what's causing most of these problems and figure out how to fix them in the most effective way.

To do this, the team collects data on the number of breakdowns that occur for each piece of equipment over a period of time. Then, they make a Pareto chart to see the data and figure out which pieces of equipment cause the most problems.

The chart shows that equipment A and B are responsible for 60% of all breakdowns, while equipment C and D are responsible for 25% and 10%, respectively. The team then uses this information to decide which solutions are most important for each piece of equipment.

They start by focusing on equipment A and B, doing preventive maintenance on it and buying new parts to cut down on breakdowns. As a result, the number of breakdowns for these pieces of equipment decreases significantly.

The team then turns its attention to equipment C and D, implementing similar solutions and seeing a decrease in breakdowns for these pieces of equipment.

Overall, the Pareto chart gave the team valuable insights into the main causes of breakdowns on the assembly line and helped them prioritize improvement solutions. As a result, the assembly line becomes more efficient, and delays decrease.

9. Force Field Analysis

The force field analysis is a tool that helps you identify the forces driving change in your organization and those that are restraining it. It can help you understand how these forces will impact your business and how to best address them.

The two key components of this model are the forces driving change and the forces restraining change. The forces driving change are things that make the change necessary, such as customer demands or competition. At the same time, the forces restraining change are elements that make change difficult, such as bureaucracy or employee resistance.

Force Field Analysis Example

Scenario: A manufacturing company is looking to improve the efficiency of its assembly line process.

Using the force field analysis, the company conducts a thorough analysis of the current assembly line process and identifies the following factors:

Forces Driving Change:

Increasing demand for the company's products
High cost of labor
Limited space on the assembly line
Difficulty in tracking inventory

Forces Restraining Change:

Lack of training for assembly line workers
Inefficient equipment
Resistance to change from employees
Difficulty in communicating changes to other departments

Based on this analysis, the company has decided to take the following actions to improve the efficiency of the assembly line process:

Invest in new equipment that is more efficient and easier to use
Provide training for assembly line workers to improve their skills
Implement a new inventory tracking system to make it easier to track inventory
Communicate the changes clearly to other departments to ensure that everyone is on the same page

By dealing with the things that cause change and getting rid of the things that stop it, the company can improve the efficiency of the assembly line process, which leads to more work and more money.

10. Prioritization Matrix

The Prioritization Matrix is a tool that allows you to set priorities for your tasks and projects. It helps you prioritize what needs to be done first, second, third, etc. It can be used for both personal and professional projects.

The prioritization matrix has four quadrants: urgent and important (U&I), not urgent but important (NUBI), not urgent but unimportant (NUII), and neither urgent nor important (NI). The first quadrant, U and I, should be handled immediately because they are both urgent and vital tasks. The second quadrant, NUBI, should also be completed instantly if possible because, although they are not critical tasks, they are still important.

The third quadrant, NUII tasks, can wait until later because they are not urgent or essential; these are just tasks that need to get done but don't necessarily need to be completed this week or even this month. Finally, the fourth quadrant of NI tasks should never be completed because they aren't essential or urgent, so they shouldn't take up your time!

Prioritization Matrix Example

Scenario: A retail company is looking to improve its customer service processes. They have identified several areas for improvement but need to prioritize which ones to tackle first.

Using the Prioritization Matrix, the company categorizes the areas for improvement as follows:

Urgent and Important (U&I): reducing wait times for customers on hold This is seen as urgent because customers are currently experiencing long wait times, and essential because it directly impacts customer satisfaction and retention.
Not Urgent But Important (NUBI): Improving the training and development of customer service representatives This is important because well-trained representatives will be better equipped to handle customer complaints and provide high-quality service, but it is not urgent because the company can continue to operate without this improvement.
Not Urgent but Unimportant (NUII) - Implementing a new customer rewards program. This is seen as unimportant because it is not directly related to customer service and does not address any current issues. It is not urgent because it is not a pressing matter.
Neither Urgent nor Important (NI) - Introducing new uniforms for customer service representatives. This is seen as neither urgent nor vital because it does not address any current issues and is not directly related to customer service.

Based on this analysis, the company prioritized reducing wait times for customers on hold as the most crucial area of improvement, followed by training and developing customer service representatives. Then, they will think about starting a new customer rewards program and giving customer service reps new uniforms at a later date.

11. JIT – Just In Time

JIT is a process improvement tool that reduces waste by eliminating the need to produce more than what is needed at production time. JIT is started by making sure that only one piece of a product is made at a time and that it is made right before it is used, instead of being made ahead of time and stored.

To make sure that all parts are available when they are needed, this system needs strict inventory control and careful planning and scheduling. This system can be very useful for companies that make a lot of products that sell quickly. Still, it also has drawbacks, as it can lead to increased costs due to having less capacity to make large batches of products at once.

JIT – Just In Time Example

Scenario: A company that makes plastic parts for the auto industry is having trouble keeping up with demand because it keeps running out of raw materials. The company is losing customers due to delays, and they need to improve their production process to increase efficiency and reduce costs.

Solution: The company implements the "just-in-time" (JIT) system for its production process. JIT is a way of making things where materials and parts are brought to the factory just before they are needed. This cuts down on the need for a lot of inventory and storage space.

Implementation: The company identifies the raw materials and components needed for production. They then establish a relationship with their suppliers and set up a system where the suppliers deliver the raw materials and components to the manufacturing facility just in time for production. This eliminates the need for extensive inventory and storage space, reducing costs and freeing up space for other production activities.

The company also uses JIT for its production process by scheduling production based on customer demand. This helps to reduce production delays and improve efficiency.

After putting the JIT system into place, the company sees a big change in the way it makes things. They can cut down on production delays and boost efficiency, which leads to happier customers and lower costs. The company can also free up space for other production activities, increasing productivity and growth.

12. DRIVE (Define, Review, Identify, Verify, Execute)

DRIVE is an acronym used in process improvement to represent the five key steps involved in solving a problem. The steps are:

Define the problem: Identify and define the problem that needs to be solved.
Review data and gather information: Gather data and information related to the problem and review it to understand the situation better.
Identify causes: Analyze the data and information gathered to identify the root causes of the problem.
Verify and validate causes: Verify and validate the identified causes to ensure they are the root causes of the problem.
Execute solutions: Develop and implement solutions to address the root causes of the problem and continuously monitor and evaluate the effectiveness of the solutions.

DRIVE (Define, Review, Identify, Verify, Execute) Example

Scenario: When the store is busy, people have to wait a long time at the checkout counter.

Define: The problem that needs to be addressed is the long wait times at the checkout counter during peak hours. This is causing customer frustration and a potential loss of business.

The store manager looks at information about customer complaints and sales during busy times to figure out how big the problem is. They also observe the checkout process during peak hours to identify potential bottlenecks.

The store manager knows that the main reason for the long wait times is that there aren't enough cashiers working during busy times. They also notice that some customers leave the store without purchasing due to long wait times.

Check: The store manager asks customers who have had long wait times if they agree with their findings. They also gather data on the number of cashiers working during peak hours and the number of customers leaving the store without making a purchase.

Execute: Based on their findings. The store manager decides to hire more people so that the ASA has been reduced to 96 seconds, which is a 20% improvement and meets the goal set in the define phase.

14. Hypothesis Testing

Hypothesis testing is a process improvement tool that allows you to test whether an assumption or hypothesis is true or false. You can use it to test whether a process is adequate or if there's room for improvement.

Hence, if you want to know whether your process is effective, you can set up a hypothesis test and see if your results match your expectations. If they don't, you could have a problem with your actions!

Hypothesis Testing Example

One example of using hypothesis testing for process improvement is in manufacturing. A company may want to improve its assembly line's efficiency by reducing the time it takes to assemble a product.

They can form a null hypothesis that there is no difference in the average assembly time before and after the process improvement and an alternative hypothesis that the average assembly time will be reduced after the process improvement.

They can use statistical analysis to test the hypotheses by comparing the assembly times before and after the process improvement. If the results show that the alternative hypothesis is true and the assembly time is cut by a lot, then the process improvement can be seen as a success.

15. SIPOC Diagram

A SIPOC diagram is a tool used to analyze a system's functions and find ways to improve them. The acronym stands for suppliers, inputs, processes, outputs, and customers (or clients).

A SIPOC diagram can be used in any industry or organization. For example, it could be used to analyze how a car manufacturer makes its cars or how the school system educates its students.

This diagram will help you identify where problems exist in your process and then figure out ways to fix them. You will have a clear picture of what each element does, so you can eliminate steps that aren't necessary or make sure that every step has all of the required information needed at every stage to ensure quality control throughout production or delivery.

SIPOC Diagram Example

Scenario: Improving the way a store fills orders Problem: Customers complain that they have to wait a long time for their orders to be filled. The store is losing business due to the slow process.

SIPOC Diagram:

Suppliers:

Vendors
Product Inventory
Shipping and Delivery Services

Inputs:

Order Requests
Product Availability
Shipping Information

Process:

Order Fulfillment
Packaging and Shipping
Tracking and Delivery

Outputs:

Completed Orders
Shipped Orders
Delivered Orders

Customers:

Retail Store Customers

Improvement Plan:

Analyze the current process and identify bottlenecks. (e.g., slow inventory management, inefficient packaging, and shipping processes)
Implement new software to improve inventory management and tracking.
Train employees on the new software and processes.
Implement a new packaging and shipping process that is more efficient.
Monitor the new process and make adjustments as needed.
Communicate with customers about the improved process and expected wait times.

Expected Outcomes:

Faster order fulfillment times
Increased customer satisfaction
Reduced wait times for orders to be shipped and delivered
Increased efficiency in inventory management and tracking
Increased business due to improved customer satisfaction and faster order fulfillment.

Why Are Process Improvement Tools Important?

Process improvement tools are essential for many reasons.

First, they help you improve your processes by providing a clear picture of how things work in your business. You can use this information to make changes that will improve efficiency and effectiveness, ultimately leading to a better bottom line.

Second, these tools can help you identify areas where improvements aren't being made as well as they could be, so that you can focus on those areas and ensure that they're working correctly.

Finally, these tools can provide insights into how to improve your processes going forward. This way, if changes are required for them to work correctly, you'll know what those changes need to be before making them happen!

How to Choose the Right Process Improvement Tools?

It's important to think about the specific needs and goals when choosing process improvement tools. Some factors to consider include the following:

The type of process being improved: Different tools may be better suited to different processes, such as manufacturing or service.
The scope of the improvement project: Will the tools be used for a small, localized project or a large, enterprise-wide initiative?
The level of data and analytics required: Some tools may be better at gathering and analyzing data, while others may be better at showing how a process works and getting that message across.
The resources available: Consider the cost and expertise required to implement and maintain the tools, as well as the training and support needed for users.
The level of collaboration required: Some tools may be better suited for team-based projects, while others may be more individual-focused.